Earnings dipped but net worth hit a record as conservatorship questions resurface
Fannie Mae closed 2025 with lower profit but a stronger balance sheet, underscoring how the government‑sponsored enterprise’s earnings engine remained intact even as credit costs rise and political pressure over its future intensifies.
The company reported net income of $3.5 billion for the fourth quarter of 2025 and $14.4 billion for the full year, down 15% from 2024, while net worth climbed to a record $109.0 billion as of December 31, 2025.
Net revenues held essentially flat at $7.3 billion for the quarter and $29.0 billion for the year, driven largely by guaranty fees on a $4.1 trillion book of business.
“Fannie Mae’s financial footing is stronger than ever, hitting a record level $109 billion net worth,” William J. Pulte, director of US federal housing and chair of Fannie Mae’s board, said.
“For the first time in four years we reduced annual administrative expenses, positioning the company for long‑term success.”
Peter Akwaboah, acting chief executive officer and chief operating officer, said the GSE’s “14 straight years of annual profitability reflect the strength of our business, the dedication of our employees, and the partnership of the institutions we serve.”
He added: “We grew our net worth to $109 billion and have strong momentum going into 2026 and beyond.”
Chryssa C. Halley, chief financial officer, said Fannie Mae is “well positioned to continue to meet the needs of the housing market while operating in a safe and sound manner.”
Profit under pressure from credit losses and fair value swings
The earnings decline mainly reflects a shift from a benefit for credit losses in 2024 to a $1.6 billion provision in 2025, along with a $1.7 billion drop in fair value gains.
Fourth‑quarter provision for credit losses totaled $298 million, largely tied to newly acquired single‑family loans and rising delinquencies, while non‑interest expenses rose to $2.4 billion.
Fannie Mae also highlighted an illustrative 10.2% return on average required Common Equity Tier 1 capital.
Market reach grows as conservatorship questions linger
On the business side, the company said it enabled financing for about 1.5 million home purchases, refinances and rental units in 2025, including roughly 704,000 purchase loans and 283,000 refinances in the fourth quarter alone, and reported its highest multifamily acquisition volume in five years.
The latest results land as debate over the long‑running federal conservatorship sharpens. Fannie Mae posted $17.0 billion in net income in 2024 and $94.7 billion of net worth, prompting renewed speculation about when it might be released from government control.
Comments from president Donald Trump and industry groups suggest that any exit from conservatorship would require substantially more capital and could take years to execute, raising questions about how far current earnings and retained profits can close that gap.
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